2002-03 Financial Statements

*Department of Defence*
**STATEMENT OF CASH FLOWS**
for the year ended 30 June 2003
		2002-03	2001-02
	Notes	$'000	$'000
OPERATING ACTIVITIES
Cash received
Goods and services		320,705	261,227
Appropriations		18,230,325	17,843,477
Interest		21,453	13,206
GST received from Australian Taxation Office		669,935	609,766
Other		162,559	115,549
Total cash received		19,404,977	18,843,225

Cash used
Employees		(5,866,959)	(5,535,080)
Suppliers*		(5,464,434)	(4,755,478)
Grants		(2,544)	(22,587)
Borrowing costs		(26,755)	(28,581)
Other		(2,000)	(1,770)
Cash transferred to the Official Public Account		(870,201)	-
Total cash used		(12,232,893)	(10,343,496)

Net cash from operating activities	12	7,172,085	8,499,730

INVESTING ACTIVITIES
Cash received
Proceeds from sales of land and buildings		578,009	160,117
Proceeds from sales of specialist military equipment		29,690	553
Proceeds from sales of plant and equipment		47,318	57,306
Total cash received		655,017	217,977

Cash used
Purchase of land and buildings		(283,254)	(274,732)
Purchase of specialist military equipment*		(2,719,134)	(2,482,883)
Purchase of plant and equipment*		(412,005)	(218,726)
Purchase of software and intangibles		(34,064)	(16,203)
Purchase of inventory		(738,520)	(806,421)
Total cash used		(4,186,977)	(3,798,965)

Net cash (used by) investing activities		(3,531,960)	(3,580,988)

FINANCING ACTIVITIES
Cash received
Appropriations - contributed equity		995,201	754,175
Total cash received		995,201	754,175

Cash used
Repayment of debt		(9,959)	(31,414)
Capital Use Charge paid		(4,918,116)	(4,750,290)
Return of contributed equity		(474,264)	(97,884)
Dividends paid		-	(8,594)
Total cash used		(5,402,339)	(4,888,182)

Net (cash used) by financing activities		(4,407,138)	(4,134,007)

Net increase/(decrease) in cash held		(767,013)	784,736
Cash at the beginning of the reporting period		835,153	58,303
Effect of exchange rate movements on cash at the beginning of the reporting period		31,416	(7,886)
Cash at the end of the reporting period	6A & 12	99,557	835,153

* Included in cash used for suppliers are costs of $217,344,136 (2002: $302,209,954) which were budgeted for as part of the capital program. Due to the asset capitalisation and threshold recognition criteria they have not been included in purchases of specialist military equipment or plant and equipment.

The above statement should be read in conjunction with the accompanying notes.